Duke Energy Renewables, a commercial business unit of
Duke Energy Corporation
) has purchased a Gato Montes Solar Power Project from AstroSol
Inc., bringing the total number of solar projects to five in
Located within the University of Arizona's ("UA") Science and
Technology Park (UA Tech Park) in Tucson, the project covering
38.5-acre land has an electric generation capacity of 6 megawatt
("MW"). The vis-solis LLC, the U.S. subsidiary of Solmotion, had
begun construction of UA Tech Park in December 2011. However,
AstroSol Inc. has received certification from the Border
Environment Cooperation Commission and approval for a $12.3
million loan from the North American Development Bank for the
construction of the project.
The Gato Montes Solar Power Project consists of 48,000 PV panels.
The Gato Montes project uses solar photovoltaic (PV) thin-film
and amorphous silicon technology. Under a 20-year agreement,
Tucson Electric Power Company ("TEP"), a subsidiary of
UNS Energy Corporation
), will buy electricity generated from the project.
This is Duke's 12th wholly owned commercial solar project in the
U.S. Of these 12 projects, five are based in Arizona, the
southwestern region of the United States and seven in Carolina,
the Southeastern United States.
The other four solar projects at Arizona include a 5 MW Ajo Solar
Project, a 15 MW Bagdad Solar Project, a 1.5 MWDC Prescott Valley
Solar Project and a 10 MW Black Mountain Solar Project at Mohave
County. All others, except Black Mountain Solar Project, are
already into service. Projects at Carolina include 1-MW Shelby
Solar Project, the 1-MW Taylorsville Solar Project, the 1-MW
Martins Creek Solar Project, and 5-MW Murfreesboro Solar Project
and three 1-megawatt commercial solar projects located in or near
the town of Murphy, N.C. at the southwestern corner of the state.
Focus of the states toward renewable energy resources would help
them in meeting Renewable Portfolio Standards. Moreover, given
the current pulse in the U.S market that favors sustainable green
generation, we believe these projects would bode well for Duke
Energy going forward.
Moreover, Duke Energy Corporation's U.S. electricity and gas
operations spread over the Carolinas, Florida, Indiana, Kentucky
and Ohio generate a relatively stable and growing earnings
However, we remain concerned due to the present unfavorable macro
backdrop, post sandy storm effects, predominantly fossil-fuel
based generation assets, tepid demand for electricity, and
pending regulatory cases. '
Like its peers
American Electric Power Co. Inc.
), Duke Energy maintains a long-term Neutral recommendation on
Charlotte, North Carolina-based Duke Energy is a diversified
energy company with a portfolio of domestic and international,
natural gas and electric, regulated and unregulated businesses,
which supplies, delivers, and processes energy for customers in
North America and selected international markets.
AMER ELEC PWR (AEP): Free Stock Analysis
DUKE ENERGY CP (DUK): Free Stock Analysis
PG&E CORP (PCG): Free Stock Analysis
UNS ENERGY CORP (UNS): Free Stock Analysis
To read this article on Zacks.com click here.